GOODS AND SERVICES

Goods and service tax is an indirect tax on the supply of goods and sevices.It is a multi-
stage ,replacing mulitiple indirect taxes,including VAT,excise duty, service tax .

India has, since launching the GST on July 1, 2017 . There are three(3) different types of gst.

INTEGRATED GOODS AND SERVICE TAX(IGST)- This gst tax is charged on inter-state
transactions of goods and services and applied on import and export.
STATE GOODS AND SERVICE TAX (SGST) –The state government charges on intra-state
goods and services transactions. The revenue is collected by the state goods and services
and applied on import .
CENTRAL GOODS AND SERVICES TAX (CGST) –The central government charges cgst on
inter-state transaction of goods and services. the concerned body is also responsible for
collecting the revenue generated through this tax.

India has, since launching the GST on July 1, 2017, implemented the following tax rates:
 A 0% tax rate applied to certain foods, books, newspapers, homespun cotton cloth,
and hotel services.
 A rate of 0.25% applied to cut and semi-polished stones
 A 5% tax on household necessities such as sugar, spices, tea, and coffee.
 A 12% tax on computers and processed food.
 An 18% tax on hair oil, toothpaste, soap, and industrial intermediaries.
 The final bracket, taxing goods at 28%, applies to luxury products, including
refrigerators, ceramic tiles, cigarettes, cars, and motorcycles.

The previous system with no GST implies that tax is paid on the value of goods and services
inflation.

WHO IS NOT ELIGIBLE FOR GST REGISTRATION :

Individuals engaged in supplying goods or services that are not liable to be taxed or individuals who
are engaged in supplying goods or services that are wholly exempted from tax are not required to
obtain GST registration. Agriculture are also not eligible for gst registration

1
GST BEFORE TAX :

Before the Goods and Services Tax could be introduced, the structure of indirect tax levy in India was
as follows:

Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central
GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST .

2
GST REGISTRATION :

GST registration is a process by which a taxpayer gets himself registered under GST. Once a
business is successfully registered, a unique registration number is assigned to them known as the
Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the
central government after the taxpayers obtain registration. GST registration usually takes between 2-6
working days.

WHO SHOULD REGISTER FOR GST: All the businesses supplying goods whose turnover exceeds
INR 40 lakh in a financial year are required to register as a normal taxable person. However, the
threshold limit is INR 10 lakh if you have a business in the north-eastern states, J&K, Himachal
Pradesh, and Uttarakhand.The turnover limit is INR 20 lakh, and in the case of special category
states, INR 10 lakh, for the service providers.

WHAT ARE THE DOCUMENTS REQUIRED FOR GST REGISTRATION :

This is the list of documents that you will need for registering your business under GST:

 Permanent Account Number (PAN) of the applicant

 Copy of the Aadhaar card
 Proof of business registration or incorporation certificate
 Identity and address proof of promoters/directors with a photograph
 Bank account statement/cancelled cheque
 Authorisation letter/board resolution for authorised signatory
 Digital signature.

PROCEDURE FOR GST REGISTRATION :The procedure for a GST registration. A taxpayer seeking
a normal registration can visit the GST portal and fill the registration Form GST REG-01.

 Visit GST portal

 Click on “Registration” under the “Services” tab and then click on “New registration”.

 Select the ‘Taxpayer’ as the type of taxpayer from the ‘I am a’ drop-down list.

 From the State/UT and District drop-down list, select the state and district for which
registration is required.

 In the Legal Name of the Business field, enter the legal name of the business/ entity as
mentioned in the PAN database.

 In the Permanent Account Number (PAN) field, enter PAN of the business or PAN of the
Proprietor.

3
 In the email address field, enter the email address of the primary authorised digital signatory.

 In the mobile number field, enter the valid mobile number of the primary digital and authorised (
a person who can be sigined onbehalf of the business organisation ) signatory.

 Enter the captcha and click the ‘Proceed’ button.

 After completing the process. After verification, you will receive a Temporary Reference
Number (TRN). The TRN will be sent to the registered email address and mobile number.

 Now click on ‘Save and continue’. Once the application is submitted, sign it digitally using DSC
and click on ‘Proceed’

 After submission, you will receive an Application Reference Number (ARN) via email or SMS to
confirm your registration.

4
HSN CODE :

WHY IS HSN CODE USED FOR : HSN codes are used to classify the commodities into various
sections, chapters, headings, and sub-headings for convenience.

IS HSN CODE MANDATORY IN GST INVOICES : Yes, under GST invoice rules and formats,
suppliers are required to mandatorily display the HSN code or SAC code of the goods or services
supplied with an invoice.

Is HSN an 8 digit code : Businesses that have a turnover of more than Rs 1.5 crore but still less than
Rs 5 crore must use 2-digit HSN codes . Businesses that have a turnover of more than Rs 5 crore
must use 4-digit HSN codes . Businesses that deal with imports and exports have to use an 8-digit
HSN code

WHY IS HSN CODE REQUIRED : The Taxpayers whose aggregate Turnover is up to Rs. 5 crores in
the preceding Financial Year HSN / SAC code of 4 digits is mandatory for all the B2B tax invoices and
optional for B2C tax invoices on the supplies of Goods and Services.

.WHO IS ELIGIBLE FOR HSN CODE : From the GST operations, HSN code will be mandatory
for all taxpayers with turnover between Rs. 1.5 crore and Rs. 5 crore in the previous financial year.

ELECTRONIC WAY BILL :EWay Bill is an Electronic Way bill for movement of goods to be generated
on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value
exceeds Rs. 50,000 without an e-way bill that is generated on ewaybillgst.gov.in. When an eway bill
is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient,
and the transporter.

ISSUE OF E-WAY BILL : E-Way bill will be generated when there is a movement of goods in a
vehicle/ conveyance of value more than Rs. 50,000 .

5
WHO SHOULD GENERATE AN EWAY BILL :

REGISTERED PERSON – Eway bill must be generated when there is a movement of goods of more
than Rs 50,000 in value to or from a registered person.A Registered personor the transporter may
choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.

UNREGISTERED PERSONS – Unregistered persons are also required to generate e-Way Bill.
However, where a supply is made by an unregistered person to a registered person, the receiver will
have to ensure all the compliances are met as if they were the supplier. 

TRANSPORTER – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way
Bill if the supplier has not generated an e-Way Bill .

HOW TO GENERATE EWAY BILL :

E-Way Bill and the e-way bill number can be generated on the e-Way Bill Portal. All you need is a
Portal login. For a detailed step-by-step guide on e-Way Bill Generation check out our article – Guide
to generate e-Way Bill online .

Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after
which Eway bills can be generated.

DOCUMENTS OR DETAILS REQUIRED TO GENERATE EWAY BILL :

1. Invoice/ Bill of Supply/ Challan related to the consignment of goods

2. Transport by road – Transporter ID or Vehicle number

3. Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the
document .

VALIDITY OF EWAY BILL :

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the
goods. Validity is calculated from the date and time of generation of e-way bill .
Type of conveyance Distance Validity of EWB
Less Than 200 Kms . 1 Day
Other than Over dimensional cargo

For every additional 200 additional 1 Day

Kms or part thereof

For Over dimensional cargo Less Than 200 Kms 1 Day

For every additional 200 additional 1 Day

Kms or part thereof

Who When Part Form

6
Every registered Before movement of Fill Part A Form GST EWB-01
person under gst goods

Registered person is Before movement of Fill Part B Form GST EWB-01

consignor or goods
consignee (mode of
transport may be
owned or hired) OR is
recipient of goods

Registered person is Before movement of Fill Part B The registered person

consignor or goods shall furnish the
consignee  and goods information relating to
are handed over to the transporter in
transporter of goods PartB of FORM GST
EWB-01

Transporter of goods Before movement of - Generate e-way bill on

goods basis of information
shared by the
registered person in
Part A of FORM GST
EWB-01

An unregistered Compliance to be 1. If the goods are

person under GST and done by Recipient as if transported for a
recipient is registered he is the Supplier. distance of fifty
kilometers or less,
within the same
State/Union territory
from the place of
business of the
consignor to the place
of business of the
transporter for further
transportation, the
supplier or the
transporter may not
furnish the details of
conveyance in Part B
of FORM GST EWB-
01. 2. If supply is
made by air, ship or
railways, then the
information in Part A of
FORM GST EWB-01
has to be filled in by
the consignor or the
recipient

7
GST RETURN :

GST return is a document that will contain all the details of your sales, purchases, tax collected on
sales (output tax), and tax paid on purchases (input tax). A person who is filing a tax has to pay the
liability for the government .

TYPES OF GST RETURNS : There are 15 types of GST-RETURN . They are as follow

0 GSTR1 : It is a monthly return of sales traction in a particular month . it is usally taken by a

outward suppliers in normal registered tax payer under GST.
0 WHO CAN FILE GSTR1 : The normal registered taxpayer can file GSTR1 in each month. only
Registered person can file GSTR1.

1.Invoice , 2 . Debit notes ,3 . Credit notes , 4 . Revisied Invoice of outward supplier .

0 DUE DATE FOR GSTR1 : The due date for gstr1 is 10th days from the end of every month .
0 GSTR2 : It is Return Inward supply of Goods and Servises . It contains the particulars of the
purchase made by the recipient of every month . The information that it contain in GSTR2 is
Auto-populated from GSTR2A .

0 WHO CAN FILE GSTR2 : The normal registered taxpayer can file GSTR2 in each month. Both
Registerd and Non – registerd persons can file GSTR2 .

1 .Invoice , 2 . Debit notes ,3 . Credit notes , Inward supply or Purchase made in every
month in GSTR2 .

0 DUE DATE FOR GSTR2 : The process of making changes and filing GSTR-2 is required to be
undertaken between 11th and 15th day of the succeeding month for which return is to be filed.
0 GSTR2A : GSTR 2A is a view-only GST return for buying goods and services. It contains the
details of all purchases made by the recipient in any month. All kinds of inward supplies to the
recipient can be viewed as purchases made from other GST registered suppliers.
0 WHO CAN FILE GSTR2A : GSTR-2A is made available to every normal registered taxpayer
filing return under GST. This is because it is a read only document that gets auto-populated with
details uploaded by supplier in GSTR-1.
0 DUE DATE FOR GSTR2 : The process of making changes and filing GSTR-2 is required to be
undertaken: between 11th and 15th day of the succeeding month for which return is to be filed.

0 GSTR3B : Summary of Inward and Outward Supplies . It is contains of GSTR1 and

GSTR2 ,GSTR2A .

0 WHO CAN FILE GST3B : Every normal registered taxpayer filing GST Returns is required to file
GSTR3B. That is, a taxpayer needs to file a Nil Return in case there are no outward or inward
transactions during a particular month.

0 DUE DATE FOR GSTR3B : The GSTR-3B must be submitted by the 20th of the month
succeeding the tax period for which GST is filed.

8
0 GSTR4 : It is a return for composition scheme dealersThis is a quarterly return that have to be
filled by the Registered tax payer . who is signed upon composition scheme . A person who is
having of 1.5 crore turnover of their business have to file the quarterly return .

0 WHO CAN FILE GSTR4 : The Small taxpayers who is registered under composition scheme
have to file GSTR4 .

0 DUE DATE FOR GSTR4 : The GSTR4 due date is 18th of every month following the quarter for
which such a return needs to be fillied within the Due Date .

0 GSTR5 : The GSTR5 is to file the return to be paid by non – resident taxable person . It is to be
filled in evey month .

0 WHO CAN FILE GSTR5 : The GSTR5 is filled by a both Registed and Non- registered taxable
person .

0 DUE DATE FOR GSTR5 : As per the GST Act, due date to file GSTR-5 is every 20th of next
month. For instance, the return of September 2018 will be due on 20th October 2018.

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62